Blockbuster Lowers Price to $14.99, More

Blockbuster just announced that they have lowered their 3-out pricing to $14.99, adding more fuel to the already hot price war.  They have promised this new price until January, 2006. 

Also in the announcement:

• Blockbuster now has 30,000 titles.
• They will hit 23 shipping centers by the end of January.

I'm wondering how Netflix will respond...

Thanks to Bahar, Ken, "M", VN, Stephen and many more who sent this in.

Comments

[Stephan]

I also noticed that Blockbuster 8 out at a time is a full $10 cheaper than Netflix.

They cut their free trial from a month to 2 weeks.

[davidg]

As much as I disliked Blockbuster's service about 2-3 months ago, this sounds appetizing. Does anybody know if they improved the service in the Chicago area? Whats the closest shipping center?

[badass]

settle down everyone, Blockbuster is doing this because there service sucks and they are in big trouble financially. The low price is good but they could offer free service and I would keep my Netflix forever anyway.

[dlr]

>settle down everyone, Blockbuster is doing this because there service sucks

Quite to the contrary for me - the NF turnaround from Baton Rouge to New Orleans was 2ce as slow as the BB turnaround from Houston to New Orleans - now if that sucks for you then we have different scales by which we measure the quality of service.

[REN]

I doubt anyone will switch to Blockbuster to save $2, but it might attract many new customers who look at price as the deciding factor.

I think $17 for Netflix is steal with the number of DVDs I get per month. Of course, I can't argue against lower prices. What I'd like to see is a 4-Out plan for the price I used to pay for 3-Out on Netflix (around $22/month).

[Lawilson]

Their registration page is down. I keep getting an error. I was willing to test it out for 2 weeks. Kinda disappointing.

[REN]

Sorry, $3. And since I mention it, I wish Netflix had more plans. I'm assuming they are keeping it the way it is to make the choice simple.

Maybe they could come up with a pricing structure with a base price and then you pay a little bit more for every dvd you add to the max-out number. This would make it really easy to tailor your plan to suit your current situation. This system might provide a 1-Out plan for $10, I think it would be better than the 2-Out plan they have now, which I consider worthless because it has a monthly limit. Is there some overhead cost for them just for having a person be a member? Wouldn't it be profitable to have a 1-Out account member that gets maybe 5 DVDs a month...

[lawilson]

It seems that the customer service site left early today due to bad weather, and they stated that they may not be in for the rest of the week (this was an automated message when I called to try to register). Perhaps this was an omen to not register for them! :)

[D Bates]

I for one thought hard about switching for a few seconds and I am hoping netfix will follow suit and get back into the price war, but as is NF is still the better deal.

Since Blockbuster opened up a center in Atlanta service has picked up by about a day while Netflix has been slowing down in recent months. The price right now is not worth it for me due to the fact that while BBs catalog is improving they still do not have as good of one as NF and NF is still faster even while slowing down.

[Rocket Punch]

Yes! another price drop. From personal experience, BB's service has improved a lot. Now I am getting movies much faster, more selections, lower prices + 2 free video game rentals every month.

[Robert P.]

Well, Blockbuster is way better than Netflix now. They ship faster than Netflix (due to the postal notification), they have more titles than Netflix, and now you get even more value for your money. I've been a Blockbuster Online customer for a few months now and I have had zero problems (except my roommates have been freeloading off my subscription - bastards). Plus, when I signed up I got a free Shrek 2 DVD =)

[REN]

I wonder how that postal notification thing works. Doesn't Netflix claim to use the same service? I swear I read about it in their help section quite awhile ago. I never experienced it, maybe it is limited to post offices with certain equipment...

I could care less about it now, but back when it took 3+ days to ship a movie it would have been very welcome.

[REN]

You know, I might actually suspend my NF account for a month to try Blockbuster again. They have a series of martial arts DVDs that I have been looking/waiting for. Netflix's request system is a blackhole. I'd say the particular movies I want aren't enormously popular, and Netflix has a small sample of them, but Blockbuster outdoes them in this particular series.

[Bill]

I tried Blockbuster for the 2 week trial and was dissapointed in shipping times. I'm in Maryland and the closest shipping center is charlotte, nc. I sent back dvd's on the same day mailed from the post office to netflix and blockbuster. I received a new dvd from netflix before blockbuster received the one's I sent back to them. Netflix is 300% faster for me. Until there is a warehouse in Maryland it's way too slow.

[Goober22]

I only get 3 day delivery from Netflix. Most of the time my movies take an additional day to ship out as well, so I'm lucky to get 12 movies total a month. I'll definately be trying Blockbuster out. I understand they use the USPS to scan the discs so they ship out faster. I know Walmart did this when I tried them and I got a few faster, but their selection is pretty poor.

[vn]

Hastings has said netflix won't cut prices in response. Wise decision because collective suicide is in no one's interest.

[Joe]

FYI:

Effective January 1, 2005 (per BB employee in Chicago)

Blockbuster will reduce the price of its MoviePass.

2-out plan: $24.99 per month (Current rate)
2-out plan: $14.99 per month (Effective January 1)

3-out plan: $29.99 per month (Current rate)
3-out plan: $19.99 per month (Effective January 1)

http://www.blockbuster.com/corporate/displayFAQDetails.action?faqId=1083126

[rlb]

I've enjoyed BB for quite a while now. They just opened a dist center near atlanta which has decreased turn around by a day. Whit BB offereing free instore rentals, how can it not be a better deal. I do like NF though for the hard to find and Independent titles that they currently have. I enjoy both services, BB has come a long way from three months ago.

Competition is good and can only help us in the long run.

[Manuel]

Writer Phillip Swann states, "Blockbuster & NetFlix Will Merge....Blockbuster's move is a clear message to its chief online rival, NetFlix: If you don't join us, we will kill you. Consequently, I predict that the two companies will merge their online divisions in 2005 or early 2006."

Netflix is fighting a losing battle.

http://www.tvpredictions.com/blockbustermerger122204.html

BLOCKBUSTER SUCKS DON'T TRY IT OR YOU WILL BE SORRY, I HAVE AND I WILL NEVER SWITCH FROM NETFLIX AGAIN! ahem.....that felt good.

[badass]

dude, don't listen to manuel, he is a blatant blockbuster lover who cruises this site to badmouth Netflix whenever he can. The dude is a dud. He has an adjenda that is sooooo see through to those who post often here.

[Manuel]

This is not good. As much as I hate Netflix I don't look forward to them merging with Blockbuster. Service will get even worse without competition.

[Joe]

BLOCKBUSTER Online(TM) to Take DVD Rental Service to New Level with Guaranteed Lower Price, Enhanced Delivery and More Titles

Blockbuster Online (TM), Blockbuster's online DVD rental service, announced today that it will take service to new level with guaranteed lower price of $14.99 per month, enhanced delivery and more movie titles. Blockbuster Online employee readies DVDs for shipping at one of company's distribution centers. (PRNewsFoto)[RV]

DALLAS, TX USA 12/22/2004

Company Guarantees Monthly Price of $14.99, Increases Distribution
Centers and Expands Online Inventory to 30,000 Titles

DALLAS, Dec. 22 /PRNewswire-FirstCall/ -- To firmly establish BLOCKBUSTER
Online(TM) as the high-quality, low-price online rental provider, Blockbuster
Inc. (NYSE: BBI, BBI.B) announced that effective immediately it has a lower,
guaranteed price for its online rental service of $14.99 a month plus tax, an
expanded distribution network and increased title selection.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20041222/NYW041 )
"We are lowering our subscription price to $14.99 a month. For those who
subscribe now, this price is guaranteed through January 2006. Existing
BLOCKBUSTER Online subscribers will enjoy the same guarantee," said Shane
Evangelist, Blockbuster senior vice president and general manager of
BLOCKBUSTER Online. "This is not a promotion. We want to make it clear to
anyone who is now subscribing to an online service or considering such a
service that Blockbuster is committed to being the high-quality, low-cost
provider in the online rental space."

New Pricing
The $14.99 monthly subscription, a price reduction of $2.50, entitles
BLOCKBUSTER Online subscribers to unlimited rentals, three movies out at a
time, with no due dates, no late fees, all postage included. Subscribers also
receive two free in-store movie or game rentals per month.
"To date, more than half of our online customers are new to Blockbuster or
reactivated, meaning they have not shopped at our stores in the past six
months," Evangelist said. "Plus, through the two free monthly store rental
coupons, we are giving subscribers an incentive to come into our stores where
they are being exposed to our new offerings including an expanded movie retail
section, movie and game trading and our store-in-store game boutiques."
Enhanced Delivery
As of mid-January BLOCKBUSTER Online will have 23 distribution centers,
more than double the service's distribution capacity when the service launched
in August 2004.
Additionally, by implementing new technology with the U.S. Postal Service,
BLOCKBUSTER Online is shortening its delivery cycles so customers can receive
even more movies each month.

More Breadth and Depth in Titles
At the same time, the company has increased the copy-depth of new release
movies and expanded its inventory to include 30,000 titles including
significant additions in TV shows, anime, Bollywood classics, Asian cinema,
music performance, documentaries, fitness and how-to categories among others.
"We have the largest number of titles in our online rental library of anyone
in the marketplace. BLOCKBUSTER Online offers customers a huge breadth of
titles, including everything from new releases to independent, special
interest and hard-to-find movies," said Evangelist.

About Blockbuster Inc.
Blockbuster Inc. (NYSE: BBI, BBI.B) is a leading global provider of
in-home movies and game entertainment with more than 9,000 stores throughout
the Americas, Europe, Asia and Australia. The company may be accessed
worldwide at http://www.blockbuster.com.

This news release contains forward-looking statements relating to
Blockbuster's planned enhancements to its online rental subscription service
and Blockbuster's goals, growth expectations and financial expectations
associated with such enhancements. Specific forward-looking statements
include, without limitation, statements relating to (i) expanded movie
inventory, (ii) reduced pricing, (iii) improvements in distribution channels
and processes, (iv) related expectations for improved turnaround times and
other service improvements and (v) cost structure and anticipated
profitability. These forward-looking statements are based on Blockbuster's
current intent, expectations, estimates and projections and are not guarantees
of future performance. These statements involve risks, uncertainties,
assumptions and other factors that are difficult to predict and that could
cause actual results to vary materially from those expressed in or indicated
by them. Factors include, among others: (i) consumer demand for Blockbuster's
online subscription service and the related impact of competitor pricing and
product and service offerings; (ii) Blockbuster's ability to implement and
maintain the information technology systems and infrastructure necessary to
support its online subscription service and to integrate such service with its
stores; (iii) Blockbuster's ability to timely open its new distribution
centers; (iv) Blockbuster's ability to respond to changing consumer
preferences and to effectively adjust its online and integrated subscription
service models if and as necessary; (v) Blockbuster's ability to effectively
and timely prioritize and implement its initiatives; (vi) changes to
Blockbuster's strategies and business plan, including its plans regarding use
of capital; and (vii) other factors as described in Blockbuster's filings
with the Securities and Exchange Commission, including the detailed factors
discussed under the heading "Cautionary Statements" in Blockbuster's annual
report on Form 10-K for the fiscal year ended December 31, 2003 and discussed
under the heading "Disclosure Regarding Forward-Looking Information" in
Blockbuster's quarterly report on Form 10-Q for the fiscal quarter ended
September 30, 2004.

SOURCE Blockbuster Inc.
Web Site: http://www.blockbuster.com
Photo Notes: NewsCom:
http://www.newscom.com/cgi-bin/prnh/20041222/NYW041 AP
PhotoExpress Network: PRN3 PRN Photo Desk,
photodesk@prnewswire.com

[cd]

14.99 for three out at a time and 2 in-store rentals per month -- I'm switching. I've been a netflix member since 1999 (when turnaround time to the east coast was more than a week). I'm currently on the 2-out, unlimited plan for 14.99 -- this plan is no longer offered (I'm grandfathered in) and Netflix refused to reduce the price when the Nov. price reduction happened. Even if Shipping times are slightly longer (there is a dstro ceneter in my state), it will be a better deal for me.

[REN]

I'm considering switching temporarily to BB. I was looking for a complete Distribution center list for either service. Why is it so hard to find an accurate list? Why wouldn't they publish the lists to make the decision easier on the informed consumer? If I was at one of these companies I would let customers enter in their zip code during the pre-signup process. Given this information I could tell them where there movies are coming from, the distance the center is away from them, and project ship times, turnaround times, etc.

[REN]

You know, if they could provide accurate information of that nature it might even be as valuable to some as a free trial. I've signed up to a few services just to see what the shipping and turnaround times would be.

I don't know if they can make use of postal markings to determine when a movie was received by the post office and when they receive it, but they could use this data to give even more accurate time estimates.

[Lawilson]

I finally got signed up for the free trial (on the phone), and they immediately sent me my 2 free coupons. I realize that in Chicago I will wait about two days, but I only plan on watching the movies on the weekend, so I don't see myself going over 12 a month anyway due to my schedule. So I'll test it to see how it works. The coupons are enticing since I have friends over who like to play video games.

[Matt]

I'm wary about blockbuster claiming to have more titles. I think a large part of that is listing each dvd of a tv series as individual. I just spend about an hour searching through blockbuster and couldn't find any movies they had that Netflix doesn't. Maybe it's just me.

--Matt

[Matt]

And in case it wasn't obvious - I searched for obscure things.

[REN]

I think I mentioned this stuff before, but to answer Matt I'll point out a few things.

I bet Netflix counts the same way. Doesn't BB carry multiple versions of movies, for example; special editions. They might also carry more titles from niche genres, like how I know they do for martial arts competitions.

[Matt]

Sorry one last thing to add on: I don't think I'll ever switch from Netflix because Blockbuster has the shittiest website ever. Netflix beat them on every search, and half the time I couldn't even figure out what I'm looking at on the BB website.

[REN]

Another thing that might not be obvious is that BB might carry both WS and Standard versions of certain films.

The BB search is terrible, along with their naming conventions. I'm sure they are not totally to blame for this.

One example is the Ultimate Fighting Championship series, some of these titles come up when searching for "Ultimate Fighting Championship" and others while searching for "UFC". And what really makes me want to throw a brick at the website is when I search for "Ultimate Fighting Championship" and it brings up season 3 of "Friends" at like #8 on the list.

[REN]

BB

Ok, there are 3 titles available for part 1 of "Lord of the Rings" with a combined total of 11 discs. There are 2 more titles listed that are only available for purchase.

NF

1 disc along with a seperate bonus disc for a combined total of 2.

[jimmy]

Here are 2 titles you will only find on Netflix:

The Lover
Henry and June

Seems BB wants to stay away from controversial movies.

[Merv]

I tried Blockbuster and canceled after 3 flicks. The shipping times sucked for the first two because the return address was in Massachusetts. I live in New Jersey. The last one had a distribution center in Queens.

The main factor for me in droppping Blockbuster is it doesn't have nearly the selection Netflix does.

[Bryan]

I'm in the middle of a 1-month Blockbuster trial. I live in downtown Minneapolis.

Six days after I loaded up my Blockbuster queue, I've only received one movie. Many others in my queue are changing status daily, from "short wait" to "long wait" and back again.

The coupons were nice, though you can only use one per day.

Netflix is heavily throttling me right now. Still, I am getting movies more frequently and they are much more available.

Currently, even with the coupons, it's no contest: Netflix is better.

[Adam]

It's really odd that Blockbuster to Minneapolis would be taking so long, because here in Chicago, my DVDs are shipped from Minneapolis and only take 3 days. Also, I'm not so sure I believe them when they say "long wait", I just had two ship that were "very long wait" and "long wait".

Also, I'm looking at a Blockbuster coupon right now, and it doesn't say anything about only using one a day, and my store has let me use both at one time many times.

[Al]

BB really sucks, I left NF in December for a better price, But little did I know their customer service is terrible, New titles are always on a "short or long waiting list" and it takes over 5 days for a movie to arrive and it's never my first choice that comes in the mail. DOes anyone else have this problen in the Boston area?

[John]

I have been using BB for about 3 months now and the available of movies has increased, but it seems the shipping is slowing down. Meaning they are not sending them using the usps code anymore lately, taking a week to get the movies rather than just a few days. Overall I have averaged 10 movies a month plus my free in-store rentals which was better than Netflix. It took over a week for turn-a-round in Norman, OKlahoma.

Also the in store coupons can be used more than one a day. I always use both at the same time. Give them 2 movies and 2 coupons at the same time and it costs nothing.